In the District of Columbia, trusts are governed by the provisions set forth in the District of Columbia Code. Understanding the key laws and regulations related to trusts in the District of Columbia can be crucial for trust creators, trustees, and beneficiaries.
Definition of a trust: According to the District of Columbia Code, a trust is defined as a relationship in which one person (the trust creator or settlor) holds legal title to property for the benefit of another person (the beneficiary).
Definition of a trust: According to the District of Columbia Code, a trust is defined as a relationship in which one person (the trust creator or settlor) holds legal title to property for the benefit of another person (the beneficiary).
Creation of a trust: In the District of Columbia, a trust must be created in writing and signed by the trust creator. The trust must clearly state the purpose of the trust and the terms under which the trust property will be held and managed.
Duties of trustees: Trustees in the District of Columbia have a fiduciary duty to manage the trust property for the benefit of the beneficiary. They must act in the best interests of the beneficiary and must use reasonable care, skill, and caution in managing the trust property.
Powers of trustees: Trustees in the District of Columbia have the power to manage, invest, and distribute the trust property according to the terms of the trust. They may also borrow money, sell property, and enter into contracts on behalf of the trust.
Termination of a trust: A trust in the District of Columbia may be terminated by the trust creator or by the terms of the trust. It may also be terminated by judicial action if the trust has become illegal, impossible to perform, or against public policy.
Trustee liability: Trustees in the District of Columbia may be held personally liable for any losses or damages resulting from their breach of fiduciary duty or other misconduct.
Trustee compensation: Trustees in the District of Columbia are entitled to reasonable compensation for their services. The amount of compensation may be determined by the terms of the trust or by the court.
Modification of a trust: A trust in the District of Columbia may be amended or modified by the trust creator or by a court order.
Non-judicial settlement agreements: In the District of Columbia, trust parties may enter into non-judicial settlement agreements to resolve disputes or make other changes to the trust. These agreements must be in writing and signed by all parties.
Trust litigation: Trust disputes in the District of Columbia may be resolved through litigation in the courts. The rules of evidence and procedure in trust litigation are governed by the District of Columbia Rules of Evidence and the District of Columbia Rules of Civil Procedure.
By understanding the key laws and regulations related to trusts in the District of Columbia, trust creators, trustees, and beneficiaries can better navigate the trust process and protect their rights and interests.
This is not legal advice, if you have questions related to trusts, please schedule a consultation by calling our office at (202) 499-2403 or 1 (833) CALLJKW -(225-5559).